We Aspire to Create Client Portfolios of “Gilt-Edged” Quality
Whether the purpose of an investor’s journey is to protect and preserve, to optimize and compound, or both, the main priority is to arrive. Whether it was a ship of old carrying precious cargo to distant opportunities or great fortunes in real estate and business, history has shown that present and future purchasing power is most likely to be secured and furthered via leading quality assets.
While we can provide general asset allocation advice on the distribution of personal holdings in real estate and other tangible assets, we only manage liquid portfolios of equities and bonds. In this context, models of leading quality do exist. Notably the “Perpetuity”, which is a constant stream of cash flows with no end, such as the British-issued bonds known as “consoles” or “gilt-edged” securities.
Ultimately, a business is also a stream of perpetual cash flows. Like “Perpetuities”, high quality investments, as we define them, have stable profits or interest payments that could extend for many years into the future. Typically, they are leading entities, amongst what we believe to be the best in their field. Their propensity to reinvest cash streams can make them true wealth preserving and compounding vehicles and these “compounding businesses” are a main focus of our work.
Methodical. Focused. Constant.
Each asset is carefully selected using objective qualitative and quantitative criteria, principally the inherent stability of cash flows and a margin of safety between intrinsic value and market price.
We view each client portfolio as akin to a “collection” where the common variable is the quality of each asset, deliberately selected and clearly organized according to clients’ specific needs and preferences for stability of capital or long-term compounding.
Our portfolios are focused, preferring the “best”, not the “most”, and aspire to be constant, to weather the vicissitudes of the long term investment journey.